Some Auto Dealership Scams While Buying the Car
There are scams that
dealer put during the deal. Get some guidance on how to avoid these scams. How
do I know about my credit score? And what shall I do, so the dealer won't get
advantage on it?
1. The VIN# window etching scam
Basically a
dealer will charge you $300-$900 for window etching and they will tell you that
you have to pay the money to get the loan because the banks insists on it. Some
dealers might tell you that the etching is free but will add on the etch money
to your monthly payments to make up for it. The best way to avoid this scam is
to force the dealer to put it in writing if they say that the etching is free or
simply etch the car yourself. Remember a lender doesn't require that you
purchase any extras on a car. All the lender cares about is that you can make
your payments on time regularly. Don't buy into it.
2. The Financing
Scam
I have mentioned this before already, but here it is in more detail.
Basically you trade in your old car and the finance manager tells you that your
interest rate is good and then gives you the car. After a week or two passes you
get the call from him that you didn't qualify for the interest rates that they
gave you upon making the deal.
Every new purchase has a clause in the
contract that usually states that the deal is subject to loan approval. This
gives the finance manager a loophole in getting more money out of you. All that
this means in the contract is that the deal is not finished yet even you already
have possession of the car and have signed the contract.
The dealer can
then charge you $1000 more in finance fees and up your monthly payments by $50.
This scam is generally pulled on people with bad credit because it is more
plausible. If you are wondering why they would sell you the car at 6% APR if
they knew you had bad credit (remember they ran the credit search already) the
answer is simple; to sell the car.
You can avoid this scam by not
financing the car with the dealer if you know that you have bad credit. You are
better off going to a credit union and financing the car yourself. When you buy
a new car the deal should be made on the price of the car, not on the monthly
payments.
3. The Credit Score Scam
This scam is ridiculous at
best. This is when the finance manager tells you that your credit score is lower
than it really is so that they can get you for higher interest rates. This scam
is pulled on everyone; good or bad credit. This scam is easy to avoid. Just get
your own copy of your credit report from Equifax.com, and bring it with you. It
is really difficult to lie to you about your credit score if you have your own
copy of it. If your paper and theirs doesn't say the same thing, go somewhere
else because that dealership is lying to you. Don't forget to let them know it
too because it'll be nice to watch them squirm.
Get yourself black on
white if the dealer offers anything free for the car. This is to avoid
unnecessary extra payment on the car. Dealer will do anything to sell the car,
even if they have to give you scams. Avoid Get the financing from the dealer if
you have bad credit, find a better solution from the credit union or the bank.
Get the copy of the credit report before getting into the deal, this is the
better way to avoid the credit score scam from the dealer.
About the Author
Mitch Johnson is a regular writer for
http://www.atv-parts-n-accessories.com/ . His articles have also appeared on
http://www.guideforvehicle.info/ and http://www.guidesforvehicle.info/